This subproject is one of many research subprojects utilizing the resources provided by a Center grant funded by NIH/NCRR. The subproject and investigator (PI) may have received primary funding from another NIH source, and thus could be represented in other CRISP entries. The institution listed is for the Center, which is not necessarily the institution for the investigator. This study will determine the effect of Pioglitazone on insulin requirements and control of diabetes in patients with newly diagnosed type 1 diabetes. Pioglitazone is an approved drug for the treatment of type 2 (non-insulin dependent) diabetes in adults. Pioglitazone enhances the action of insulin therapy in patients with type 2 diabetes mellitus. Studies have shown that Pioglitazone also affects immune cells although in much bigger doses. In an animal model of type 1 diabetes, pioglitazone delays the onset or prevents the development of diabetes.